Centerspace Announces Financial and Operating Results for the Year Ended December 31, 2023, Provides 2024 Financial Outlook and Dividend Increase
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
Per Share | 2023 | 2022 | 2023 | 2022 | ||||
Net income (loss) per share - diluted | $ (0.65) | $ (0.24) | $ 2.32 | $ (1.35) | ||||
FFO - diluted(1) | 1.11 | 1.16 | 4.27 | 4.32 | ||||
Core FFO - diluted(1) | 1.22 | 1.17 | 4.78 | 4.43 |
Year-Over-Year | Sequential Comparison | YTD Comparison | ||||
Same-Store Results | 4Q23 vs 4Q22 | 4Q23 vs. 3Q23 | CY23 vs. CY22 | |||
Revenues | 3.9 % | 0.5 % | 7.2 % | |||
Expenses | (1.2) % | (3.6) % | 4.6 % | |||
Net Operating Income ("NOI")(1) | 7.6 % | 3.4 % | 9.0 % |
Three months ended | Twelve months ended | |||||||||
Same-Store Results | December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||
Weighted Average Occupancy | 94.8 % | 94.7 % | 94.8 % | 94.9 % | 94.6 % |
(1) | NOI, Funds from Operations, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" and "Non-GAAP Financial Measures and Other Terms" in the Supplemental Financial and Operating Data below. |
Highlights for the Year Ended December 31, 2023
- Net Income was
per diluted share for the year ended December 31, 2023, compared to Net Loss of$2.32 per diluted share for the year ended December 31, 2022;$1.35 - Core FFO(1) increased to
or$4.78 7.9% per diluted share for the year ended December 31, 2023, compared to for the year ended December 31, 2022;$4.43 - Operating income increased to
for the year ended December 31, 2023 compared to$84.5 million for the prior year;$13.9 million - Same-store year-over-year NOI(1) grew to
9.0% driven by same-store revenue growth of7.2% ; - Continued to grow
Colorado portfolio through acquisition of an apartment community inLoveland, Colorado consisting of 303 homes for an aggregate purchase price of ;$94.5 million - Thirteen communities in
Minnesota ,Nebraska , andNorth Dakota were sold for an aggregate sales price of . The sale included four communities in the$226.8 million St. Cloud market comprising 692 homes, two communities in theOmaha -Lincoln market comprising 498 homes, three communities in theMinneapolis-St. Paul market comprising 377 homes, and four communities in the Minot market comprising 712 homes and related commercial space. - 216,000 common shares repurchased for total consideration of
and an average of$11.5 million per share.$53.44
Balance Sheet
At December 31, 2023, Centerspace had
Subsequent Events
Subsequent to December 31, 2023, Centerspace entered into definitive purchase and sale agreements for two communities with expected gross proceeds of
Subsequent to December 31, 2023, Centerspace repurchased 87,722 common shares for total consideration of
Dividend Distributions
Centerspace's Board of Trustees announced a quarterly distribution of
The Board of Trustees also declared a distribution of
2024 Financial Outlook
Centerspace is providing the following guidance for its 2024 performance.
2024 Financial Outlook | |||||
Range for 2024 | |||||
2023 Actual | Low | High | |||
Net income (loss) per Share - diluted | $ 2.32 | $ (1.31) | $ (0.99) | ||
FFO per Share - diluted | $ 4.27 | $ 4.54 | $ 4.80 | ||
Core FFO per Share - diluted | $ 4.78 | $ 4.68 | $ 4.92 |
Additional assumptions:
- Same-store capital expenditures of
per home to$1,075 per home$1,150 - Value-add expenditures of
to$25.0 million $27.0 million - Proceeds from potential dispositions of
to$18.8 million $19.0 million
FFO and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, please refer to "2024 Financial Outlook" in the Supplemental Financial and Operating Data below.
Earnings Call
Live webcast and replay: https://www.ir.centerspacehomes.com | ||||
Live Conference Call | Conference Call Replay | |||
Wednesday, February 21, 2024 at 10:00 AM ET | Replay available until March 6, 2024 | |||
1-833-470-1428 | 1-866-813-9403 | |||
International Toll Free Number | 1-929-526-1599 | International Toll Free Number | 1-929-458-6194 | |
Canada Toll Free Number | 1-833-950-0062 | Canada Toll Free Number | 1-226-828-7578 | |
Conference Number | 373306 | Conference Number | 297696 |
Supplemental Information
Supplemental Operating and Financial Data for the year ended December 31, 2023, is available in the Investors section on Centerspace's website at https://www.centerspacehomes.com or by calling Investor Relations at 701-837-7104. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release.
About Centerspace
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of December 31, 2023, Centerspace owned 72 apartment communities consisting of 13,088 homes located in
Forward-Looking Statements
Certain statements in this press release are based on the Company's current expectations and assumptions, and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Forward-looking statements are typically identified by the use of terms such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "assumes," "may," "projects," "outlook," "future," and variations of such words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements, as these statements are subject to known and unknown risks, uncertainties, and other factors beyond the Company's control and could differ materially from actual results and performance. Such risks and uncertainties are detailed from time to time in filings with the SEC, including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" contained in the Company's Annual Report on Form 10-K, in quarterly reports on Form 10-Q, and in other reports the Company files with the SEC from time to time. The Company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.
Contact Information
Investor Relations
Josh Klaetsch
Phone: 701-837-7104
E-mail: IR@centerspacehomes.com
Marketing & Media
Kelly Weber
Phone: 701-837-7104
E-mail: kweber@centerspacehomes.com
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